China cuts tariffs on 700 more items

In its third round of tariff cuts this year, China announced that 700 more goods will have tariffs cut. Bloomberg reports:

China announced another round of tariff cuts, lowering import taxes on more than 700 goods from Jan. 1 as part of its efforts to open up the economy and lower costs for domestic consumers.

No doubt, that’s what they say. And it is true that domestic consumers will benefit from lower cost access to foreign goods. But, is President Trump’s pressure on China not a factor? I am sorry, but I can’t accept the notion that Trump is irrelevant to the decision.

Note that the rate cuts are temporary and can be changed at any time. To me, this is further evidence that they are a bargaining chip in the confrontation over trade that President Trump started.

The underlying reality – that President Trump recognized unlike his predecessors – is that because of its trade surplus, China has far more to lose than the US from a trade war. […]